Subtract this money from your investment amount and use the remainder to make a down payment. Calculate your price range. Your price range will depend on how much a down payment the seller of the property requires. Set several different price ranges that are dependent on the seller requiring different down payment percentages, from 5 percent to 20 percent.
However, with seller financing borrowing from the seller of the property , you may be able to get the down payment percentage down to 5 percent. Project future earnings from the hotel. You need to make sure that any hotel you want to buy will be able to provide you with enough returns to cover both your expenses and your cost of borrowing. To do this, project the cost of your loan payments over the next three to five years. This may require the assistance of your loan broker.
Make sure that these earnings cover or exceed your costs. Decide whether to buy an existing hotel or start your own. In looking for hotels to purchase, you have the option of either buying existing hotel properties or looking for another property to convert into a hotel or bed and breakfast.
In the latter case, you will need to set aside more money for renovations, but are free to choose a larger variety of properties. Make this decision before moving forward with the property selection process. Choose a general area. You may even have to move there full time to make sure the hotel is run properly.
In addition, having a familiarity with the local area and hotel market can be a serious advantage. Ask local real estate brokers about hotel sales in the area, specifically if they generally sell for less or more than the asking price. Lower prices may reflect a depressed market and allow you to come in at a lower price and possibly work out seller financing with the seller.
Work with specialized real estate brokers. Let real estate brokers in your chosen area know that you are seeking to purchase a hotel and what your price range is. They will be able to show you properties currently on the market or let you know if new ones become for sale.
They also may be able to show you properties that can be converted into a hotel. It may also be advantageous to drive around the local area and look for properties, particularly if you are planning to significantly update or restore your hotel. If you find one, you can access real estate records at the county seat to find out who owns the property and go from there.
If the offer is missing any of these items contact the seller and request them. Hire an appraiser to value the hotel. Locate and acquire the services of an appraiser who has experience with hotels or similar properties. Consider hiring a financial consultant. We intend building Sean and Sharon Hotel on this structure;.
Sean and Sharon Hotel is fully aware that they are coming into an industry that can be highly competitive which is why they have decided to pay attention to the SWOT analysis for the organization. We know that once we are able to identify our strengths, our weaknesses, our threats and the opportunities that is available to us, we will be able to come up with good business strategies that will help us achieve all our business goals and objectives.
We know too well that one of the ways to build a successful business in the long run, is the ability to glean some lessons from the weak points we have found ourselves in and convert it to an area of strength. In a case where there is little or nothing that can be done, we may also work so hard so that our areas of strength blossoms more, so that are weak area is very less visible.
Our perceived weakness could be that we are a new business, and we may not have the financial muscle to sustain the kind of publicity we want to give our business. We are in one of the cities in the world that never goes to bed, plus the fact that Las Vegas is regarded as the world headquarter as far as casino business is concerned. It means that loads of tourist, business executives and travelers would want to visit Las Vegas and we are well positioned to welcome them, because our hotel facility is just about 20 minute drive from McCarran International Airport in Las Vegas, and few minute drive from Mandalay Bay Event Center.
One of the threats that is likely going to confront us is; unfavorable government policies, downturn in the economy which is likely going to affect sales and perhaps the emergence of new hotels competitors within the same location where our hotel is located. The trend in the hospitality industry is such that there are peak periods and off peak periods.
Thus, hoteliers know this and have been able to make provision to properly handle the change in season. For example; during summer or during any major sporting event or business summit, most hotels in Las Vegas are almost fully booked. As a matter of fact, that is the period that some hotel make the money that will sustain the business for the rest of the year. Be that as it may, some hotels are well positioned and they enjoy rich patronage all through the 12 calendar months of the year.
Over and above, hoteliers are quite aware that they are in the industry not for quick returns on their investments, but to steadily build a brand that can become a global brand while growing their profits year in year out. Sean and Sharon conducted her feasibility studies and market survey and we were able to identify those who we expect will eventually become our loyal customers.
We do not intend to waste our time on activities that would yield us nothing, which is why we invested time to create a hotel marketing plan to help us do only the most needful things.
These are the category of people that we intend marketing our hotel to;. The competitive edge of Sean and Sharon Hotel Las Vegas, Nevada is the excellent and customized service that we offer to all our guest irrespective of their status. We can boldly say that the location of our hotel is going to give us an edge over our competitors in Las Vegas. We are in the middle of the happening city in Nevada. From the location of our hotel, you can connect any part of the city with little or no stress.
Another significant competitive advantage that we are bringing to the industry is the robust experience of our management team. We have a team that has a combination of 40 years of experience in the hospitality industry in United States and Canada. They are considered as core professionals in their own right. We will adopt the following means to attract the kind of people that we want in our hotel per — time:.
The model of bar we intend running is a neighborhood type of bar, hence, we are not going to rely only on the conventional ways of marketing. Our unique selling proposition is that we have a collection of almost all brands of beers produced in America in our bar, we have assorted drinks and tobaccos et al. In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but generate repeated sales from them; Parts of the marketing and sales strategies that we will adopt are;.
It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field.
Below is the sales projection for Sean and Sharon Hotel, it is based on the location of our hotel and the services and products that we will be offering;. Be that as it may, we have put plans in place to discount our products and services once in a while and also to reward our loyal customers. We are well prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals, aim and ambition.
Our product and service offerings are listed below;. Our vision is to become one of the leading boutique hotels — brands in Las Vegas — Nevada and all over the United States of America.
Our mission is to deliver reliable, genuine, caring and excellent services superior to what our competitors can offer in any location where our boutique hotel will be situated and to ensure that our boutique hotel enjoys over 90 percent occupancy in most parts of the calendar year.
The success of any business is to a large extent dependent on the business structure of the organization and the people who occupy the available role. We will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business. We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders the owners, workforce, and customers.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;. Our plan of opening our boutique hotel in Las Vegas — Nevada is to test run the business for a period of 3 to 5 years to know if we will invest more money, expand the business and then spread our tentacles all over Nevada and key cities in the United States.
We are quite aware that there are several boutique hotels, hotels and motels all over Las Vegas — Nevada and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.
We know that if proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be well equipped to confront our threats. So also, we have a management team that has what it takes to grow a new business to profitability within record time. Just like any other business, one of the major threats that we are likely to face is economic downturn.
Another threat that may likely confront us is the arrival of a new boutique hotel and even chains of hotels in same location where ours is located. The trend in the hospitality industry is such that there are peak periods and off peak periods, hoteliers know this and they have been able to make provision to properly handle the change in season.
For example, during summer or during any major sporting events or business summit, most hotels in Las Vegas are almost fully booked. As a matter of fact, that is the period that some hotel make the money that will sustain the business for the rest of the year. Be that as it may, some boutique hotels are well positioned and they enjoy reach patronage all through the calendar months of the year.
Over and above, hoteliers are quite aware that they not in the industry for quick returns on their investments, but to steadily build a brand that can become a global brand while growing their profits year in year out. There is hardly any organization who intends sending their staff members on official assignment or individuals or families going on vacation who would not need a place to lodge.
Most people that go on vacations or official assignments outside their locations look forward to the hospitality they will get when they lodge in boutique hotels cum hotels. In view of that, we are in business to offer our boutique hotel services and amenities to the following groups of people and businesses;. A close study of the hospitality industry cum boutique hotel industry reveals that the market has become much more intensely competitive over the last decade.
As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.
We are aware of the stiff competition and we are well prepared to compete favorably with other boutique hotels, chains of hotels and motels in and around Las Vegas — Nevada.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category startups boutique hotels in the Boutique Hotels industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.
We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time. We are in the Boutique Hotels industry to maximize profits and we are going all out to ensure that we achieve or business goals and objectives. One thing is certain when it comes to boutique hotel services, if your boutique hotel is centrally positioned, you will always attract customers and that will sure translate to increase in revenue generation for the business.
Aug 10, · How to Buy a Hotel Business. Owning your own hotel is a popular way to start a new business. Every year thousands of people, ranging from the retired couple to the lifelong hospitality professional, buy guest houses, hotels or 80%(35).
According to the United States Bureau of Labor Statistics, the hotel industry is expected grow by 5 percent between and Like any business, starting a hotel requires careful research and planning before opening. The easiest way to do this is to create a detailed business plan for your hotel.
Writing your business plan doesn't have to be a chore. Just check out these sample business plans for hotels and motels to get some ideas and inspiration. We put together a guideline / template of how to write a hotel business plan. Simply follow our example /5().
How to Start a Hotel: 5 Keys to Success Starting a hotel requires careful choice of a location and strategy, a business plan, access to considerable financial resources, and a customer service mindset. Buying a hotel can be a complicated process, even with previous experience owning and running an establishment. The business-for-sale marketplace is v.